Worthington Steel, Inc.

Solid but cyclical value-added steel processor with mid-pack margins and average ROE; no standout franchise metric.

Strengths

• Good asset returns (ROA 5.6%, 80th pct) and strong interest coverage (20.7x, 90th pct); low leverage (D/E 0.14)
• Generated ~$100M FCF; expanding via Tempel/Sitem electrical-steel laminations for EV/industrial motors

Risks

• ROE 10.3% (61st pct) is merely average and net/operating margins are mid-pack (56th/59th pct); gross margin 12.6% (11th pct)
• Heavy automotive/construction concentration (~52%/11%) and top-three customers ~33% of sales
• Commodity steel-price volatility and inventory holding-loss risk

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Customer concentration~11% of revenue from one customer/distributor — 0% and 11
• Revenue declineRevenue -11.7% YoY